UNIONBANK of the Philippines, Inc. said it completed a rights offer, raising P10 billion from shares issued at P62.97, against today’s closing price of P67.
In a disclosure to the bourse, the bank said its rights shares listed on the Philippine Stock Exchange on Friday.
The bank issued 158.8 million common shares, equivalent to 15% of the bank’s outstanding shares.
Participants in the rights offer subscribed for one share for every 6.6644 common shares held as of the Sept. 3 record date.
The rights offer was marked by “strong participation from retail investors” as well as the bank’s principal shareholders Aboitiz Equity Ventures, the Social Security System and Insular Life Assurance Co. Ltd.
Citigroup was the sole global coordinator and international lead manager of the offer, while Amalgamated Investment Bancorporation served as the domestic underwriter.
In the statement, UnionBank President and Chief Executie Officer Edwin R. Bautista said strong demand for the offer demonstrates the support of the shareholders for the bank’s strategic ojectives.
“The proceeds give us a stronger capital base that supports our growth aspirations and provides a buffer for capital requirements,” he added.
The bank is set to raise P20 billion through the issuance of peso bonds or commercial paper in multiple tranches.
In February it raised P3 billion via long-term negotiable certificates of deposit, representing the first tranche of its P20-billion program.
Banks have been tapping the capital markets in recent months to raise more funds ahead of tighter risk management measures that will take effect on Jan. 1, 2019 under the international Basel 3 standard.
Rizal Commercial Banking Corp., Bank of the Philippine Islands and Metropolitan Bank & Trust Co. have conducted rights offers this year to raise P15 billion, P50 billion and P60 billion, respectively.
UnionBank booked a P4.7-billion net profit in the first half, up 8% from a year earlier.
UnionBank closed down P1 or 1.47% at P67.00.